Where workers choose to live is important, because it will probably determine where many of them will be taxed.
“You pay taxes where you live. If New Jersey doesn’t get the residents, they won’t get the tax benefits,” said Rutgers economist James Hughes, the university’s former dean at the Edward J. Bloustein School of Planning and Public Policy.
Hughes was referring to the tax reciprocity agreement between Pennsylvania and New Jersey, which spares residents in those states who commute to the other from having to pay income taxes in both the state where they live and where they work.
